When shopping for a home, there are several important details that you will need to know about the property before placing an offer. This information can almost always be found in the sellers disclosure. A sellers disclosure is a notice of the sellers knowledge of the condition of the property as of the date signed by the seller and does not substitute for any inspections or warranties the purchaser may wish to obtain. Every seller in the state of Texas is required to have a sellers disclosure to sell a home. There are 11 exemptions to this law, the most common being a builder of a new home, a trustee or executor of an estate, and a foreclosure home.

The sellers disclosure is broken into eight parts to ensure all factual information is disclosed about the home. These eight parts are General Information, Information About Equipment and Systems, Information About Structure/Other, Miscellaneous Information, Information About Foundation, Information About Drainage, Information About Termites/Wood Destroying Insects and Information About Environmental Conditions,

General Information will report factual information about the home (when it was built, was it a rental or homestead, is there currently any active warranties on any items on/in the property, has the seller ever placed an insurance claim for damage to the property, etc.).  Also, if the property has had an inspection within the last four years, the inspection will be stated here and a copy of the report will be attached.

Information About Equipment and Systems includes items such as appliances, sprinkler system, garage door, electrical system, plumbing system, gas lines, etc. and will be reported as “Working Condition”, “Has Been Replaced” or “In Need of Repair”.

Information About Structure/Other discloses information about ceilings, doors, windows, floor, fireplace, roof, foundation, etc. These items will be answered the same way as the section above, and any items repaired/replaced will have the date they were repaired and the details of the repair.

Miscellaneous Information is where you will find much of the background information about the home. Pending bankruptcies that could affect the sale of the property, if the property is located in a flood plain or Corp of Engineers, any easements on the property, knowledge of lead based paint, etc. Please pay special attention to this portion of the document because it discloses information that may be a deal breaker for some buyers.

Information About Foundation, Information About Drainage, Information About Termites/Wood Destroying Insects and Information About Environmental Conditions all disclose facts that the seller is aware of in these particular areas. Note that if the seller is not aware of default in these areas, it will not be disclosed but does not mean it will not show up in an inspection report.

If at all possible, try to have the sellers disclosure in hand when visiting the home. When you place an offer on the home, sellers will have signed the sellers disclosure stating they have answered the questions to the best of their knowledge and have not received any instruction from their agent or broker on how to answer any of the questions. Buyers, when placing an offer, will also initial and sign, stating they have received the disclosure.

As always, if you have any questions about this information, please contact me at kperryhomes@gmail.com.